Perpetual, Atoz sign agreement for W. Sumatra coal project
Thursday, June 12 2014 - 01:17 AM WIB
ASX-listed Perpetual Resources Limited announced Thursday that it has come to an agreement with PT Atoz Nusantara Mining (PANM) in relation to future coal production at PT Atoz mine in West Sumatra.
Following the conclusion of drilling as announced on 30 January 2014, Perpetual has been reviewing different options to move the project forward, the company said in a statement.
Perpetual?s main concern is the risks involved in mining in Indonesia and how those risks can be mitigated.
?We believe that the agreement with PANM has achieved this aim. The parties have agreed for PANM to commence production totally at its own cost and in return Perpetual will receive a royalty of US$3 per ton of all coal sold by PANM,? the statement said.
This results in Perpetual having zero financial risk and provides benefit from a substantial revenue stream into the future.
PANM plans to start production in August 2014, and Perpetual will advise the market when this occurs.
The Atoz coal project is located 60 kilometers south of Padang in the central west of West Sumatra. The project covers 192.08 hectares and has an approved production license.
Editing by Reiner Simanjuntak